Insight By: Jordan Koeppel
SAB Capital’s Jordan Koeppel is currently representing a Winn-Dixie Anchored Shopping center in Mobile, AL. Aldi is set to acquire approximately 400 Winn-Dixie and Harveys Supermarkets from Southeastern Grocers as a part of its continued growth strategy for 2023, which includes plans to open 120 new locations by the end of the year.
The acquisitions are primarily occurring across Alabama, Florida, Georgia, Louisiana, and Mississippi, with the retailer evaluating which locations will be converted to Aldi’s and which sites will remain operating under their current brands – implying that no store closings are set to occur from this transaction. Aldi’s presence in the Southeast started in the mid-1990s, and since then, the grocery store chain has invested $2.5B in the region, signifying substantial investment opportunities within the brand.
The conversion of Winn-Dixie locations creates several opportunities for Aldi’s store layouts. Aldi’s footprints typically come in at around 22,000 square feet, while Winn-Dixie sites average substantially larger at 48,000 square feet. That being said, some converted Aldi stores are now open to the possibilities of creating a larger floor plan to maintain or increase traffic or subleasing additional space in converted stores to act as value-add opportunities.
Grocery stores and grocery-anchored shopping centers have performed exceptionally well in recent years and have been proven sustainable throughout instances of market fluctuation. In 2022, grocery-anchored centers notched a record year in transaction volume, accounting for $14.7B, increasing nearly 16% over their 2021 record-breaking figures.
Their ability to attract other national tenants has increased the interest we’ve seen in these shopping centers, and their performance has been noticeably strong. If you’re interested in seeking opportunities to break into or maintain investment opportunities within the Grocery Store or Grocery-Anchored Shopping Center asset classes, reach out for more information on a Winn-Dixie anchored shopping center SAB is currently representing, located in Mobile, AL, approximately 20 miles from Aldi’s newly opened 26th distribution center in Loxley, AL.
For more insight on the Grocery and Grocery-Anchored Center space, reach out to:
Jordan Koeppel | Vice President | Investment Sales : 646.809.8842 | jkoeppel@sabcap.com
And for more information on the WInn-Dixie-anchored shopping center, Vigoroux Marketplace, in Mobile, AL, visit:
